Analysts expect BoC to stand pat until 2018

The Bank of Canada’s December 7th rate announcement will be a domestic highlight, but it’s unlikely to move markets.

As Prab Sagoo, associate director at Nasdaq Advisory Services, points out, no rate change is expected. Plus, analysts predict a hold until early 2018 as the Bank waits to measure the potential effects of Trump’s policies. As well, there will be no press conference.

Also consider that, for the BoC, “nothing much has changed in the past six weeks,” reports Canadian Business, which adds, “That may sound odd given recent events, but the election [win] of [President-elect] Donald Trump will have had little impact on the [BoC]’s deliberations. Poloz, Wilkins and the other members of Governing Council will have concerned themselves with what the latest data say about the future course of inflation. Those indicators suggest the economy is about where the central bank thought it would be at the end of 2016.”

Read: Monetary policy and how it affects you

CB notes Trump’s policies could eventually impact the BoC but that won’t be focused on this week. Read more on how markets have been reacting to Trump’s leadership.

Also read:

Rate-sensitive sectors will “take a hit” leading up to Fed hike

Time to hike interest rates, says former BoC governor

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.